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Israeli real estate market heats up again

The number of deals rose sharply in early November, the Ministry of Finance reports.

Are housing prices about to change direction? The Ministry of Finance today published figures for new and secondhand housing sales in October. The figures were not unusual, especially for a month in which the Sukkot holiday took place. At the end of the review, however, the report gives a glance at the real estate market in November – where there is some real drama.

“Initial figures for November indicate a sharp rise in the number of deals. This is particularly prominent in the secondhand housing sector,” the review states. “The proportion of increase in secondhand housing purchases is significantly greater than for new housing, which can be explained, among other things, by sales of housing from a waiting housing inventory and/or stronger housing sales by investors.”

If indeed real estate investors are “throwing” merchandise on the market, it could be a sign of a change in the price trend, because it would mean that not only are investors buying far fewer apartments in recent months, but they are now apparently selling them. Beyond the fact that this is increasing the supply of housing in the market, it is possible that the investors’ decisions stem from expectations of a fall in prices, leading them to act now when prices are at a peak.

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